Merger Arbitrage Spread List March 24, 2019
This is the Merger Arbitrage Spread List March 24, 2019. A FREE list of the largest cash merger arbitrage opportunities trading on major US exchanges. The FREE spreadsheet below contains the latest essential deal information and criteria as per official company announcements. This merger arbitrage spread list provides the user with an investable database of deal spread opportunities. This information can provide a solid foundation for making merger arbitrage investing part of your investment portfolio. We encourage traders and investors to perform their own due diligence before making investments. However, merger arbitrage (also known as risk arbitrage) is relatively simple to understand and execute.
Not quite sure you’re ready for merger arbitrage yet?
Why not read our “How to Profit from Merger Arbitrage” guide first.
In addition to our free merger arbitrage spread list you can also check out more great content for FREE on this site using the menu bar above. Scroll through the listings on the “performance” and “analysis” pages to view our regular weekly output. To the right you can see what everyone else is reading from the “Popular Posts section or click on the “Archive” links. You can download our free to use Excel merger arbitrage spread calculation tool for calculating any stock-for-stock deal spreads you may be interested in along with detailed instructions for use.
A review of the week’s biggest movers highlighting the winners, losers and completions to last weeks top 20 list is also already available.
The Past
- There were no completed deals from last weeks T20 list
- There were NO failed deals from last weeks list.
- Bluegreen Vacations Corporation (BXG) drops out of the list due to the spread now trading at a premium to the offer price whilst Immune Design (IMDZ) drops out as the spread is now at parity.
The Present
- Nightstar Therapeutics (NITE) and Ultimate Software (ULTI) are the T20 replacements already in existence this week
- There were no new cash deals announced during the week that made our list
- The largest (simple) spread this week continues to be Pacific Biosciences of California (PACB), offering a return of 9.59%. Mellanox (MLNX) is the second largest offering 5.88%.
- The average spread for the positive portion of the T20 list is a 1.67% return. This return is higher than recent historical average due to the addition of MLNX. The T20 list is now back up to 18 constituents. To maintain consistency we have instigated (in line with the rules) two parts of cash in the vacant arbitrage spaces. Holding a cash position as part of the T20 portfolio also avoids the over reliance and increased weighting on the existing positions whose volatility may have had an outsized effect on the returns of the portfolio.
- We had warned for some time that speculating on the outcome of the broader economic picture or the wider geo-political scene is not within the sphere of merger arbitrage. Despite this, merger arbitrage spreads have remaining stagnant or widened marginally over recent weeks. The broader market sell off on Friday was a timely reminder of the risk reward payoff we are currently facing. An increase in the broader market will not move the overall spread portfolio much higher whereas any market shock could have a significantly negative effect.
- Always be careful using leverage in these situations and more than ever, maintain at least some dry power for the expected future opportunities.
The Future
- There are no scheduled earnings announcements for the forthcoming week
- InfraREIT, Inc. (HIFR) is the only dividend payment expected during the coming week on March 28th.
- The go-shop provision for Ultimate Software (ULTI) is expected to expire on Monday March 25th.
- Any deal announcements relating to this weeks T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited.
